How Chidambaram averted a sovereign rating downgrade?

GR: Sunil Fernandes Tuesday, February 18, 2014, 12:10 [IST]

In late Jan and early Feb, a currency contagion almost engulfed emerging markets including those in South Africa, Argentina, Turkey, Ukraine with even fundamentally strong currencies like the Mexican Peso coming under fire.

The Indian rupee did not budge and remained resilient as it has in the last several months, ever since it sunk to 68.81 against the dollar in Sept last year.

In fact, in the last several months there has been a manifold improvement in economic fundamentals, which has kept the rupee rock solid. On a few key economic parameters, Finance Minister P Chidambaram has done remarkably well and averted an almost certain sovereign rating down grade to "Junk" from global rating agencies. In fact, it's been long since news channels have interviewed rating agencies, asking them of the chances of a ratings downgrade. Take a look at what has improved in the last several months and how Chidambaram has averted a ratings downgrade.

Current account deficit (CAD) well under control

When Chidambaram inherited the economy, the current account deficit was in shambles. In fact, in the previous fiscal it reached 4.8 per cent of GDP. It is now set to end the year at around 2.5 per cent GDP - a level which many economists see as well under control.

The government and the RBI intervened through curbs on gold exports and liberalising forex swaps to help the deficit. A number of other initiatives by the RBI and the government were taken to boost exports, which in turn reduced the trade deficit and the current account deficit. If the CAD is under control, which it is right now, the currency will be under control. Read CAD and its impact on currency here

Our forex reserves are healthy and we should not worry any longer of the US Federal Reserve's decision to taper QE3 further. Read more on QE3 here

Fiscal deficit under control

On numerous occasions Chidambaram has said that the "red line" on fiscal deficit would not be breached. The fiscal deficit for 2013-2014 is likely to come in at 4.6 per cent of GDP which is much lower than 5.8 per cent seen in 2011-2012, when Chidambaram took charge of the Finance Ministry. The last two years under Chidambaram has seen a gradual decline in the fiscal deficit. Of course, he has been shrewd enough to ask PSU companies to pay interim dividends now and also pushing subsidies to the next year. 

CPI inflation at 2 year low

After months of battling with inflation, there are signs that the measures by the RBI and the Government may have worked. CPI inflation for January has come in at a two year low, while WPI inflation has come in at a eight month low of 5.05 per cent.

If the current account deficit, fiscal deficit are under control and price stability is achieved there is no way that rating agencies are going to downgrade India.

For the time being at least we have averted a ratings downgrade, which towards the middle of last year looked almost certain. At least for a change we should not be cynical and applaud Chidambaram and the RBI.

Telangana updates

New Delhi, Feb 18: 2014:oneindia

After much ruckus, one of the most controversial - Telangana bill was passed in the Lok Sabha through voice votes.

The controversial Telangana Bill was tabled in the Lower House of the Parliament on Tuesday. The T-Bill has been causing rift in the parliament as the legislators from Seemandhra are hell bent on not letting the state bifurcation bill passed. 

6.03 pm:

"A sad day for the entire system," said Union minister Pallam Raju.

5.45 pm:

Minister of State for Railways and West Bengal state Congress chief Adhir Chowdhury defends the decision to pass Telangana Bill in Lok Sabha. The Congress leader said the TMC is against the decision for it is worried over the Gorkhaland issue.

5.30 pm:

"Hyderabad would help Telangana but who would help Seemandhra and Rayalaseema," asked Swaraj, saying there should be a provision for that.

"We had always backed Telangana," Swaraj said.

"The Congress fought the 2004 LS polls with the TRS but yet did not act on Telangana during the UPA I's stay in office. It also did not act on the issue for most part of the UPA II. It took up the issue in the last week of the 15th Lok Sabha," said Sushma Swaraj.

BJP addresses press conference.

Leader of the Opposition in Lok Sabha Sushma Swaraj speaks on the Telangana Bill. She criticises the Congress on handling the matter.

5.25 pm:

'Pepper Spray' MP L Rajagopal resigns from Parliament and even decided to quit politics. He sent his resignation letter to Speaker Meira Kumar.

Rajagopal said that the creation of Telangana would harm the federal structure of the country and the people of Andhra Pradesh would go through traumatic experience after this.

5.11 pm:

"All these things would happen but we were committed to Telangana. Our leader had announced our plan to set up Telangana during the UPA I and we had to go to complete our task sincerely," Union Home Minister Sushilkumar Shinde said.

"Seemandhra will be given special package," the minister said.

5.06 pm:

Union minister Kamal Nath said the move gave shape to a long-pending dream. He also took a dig at the BJP, saying the latter was adopting a double standard on the Telangana issue.

Another Union minister RPN Singh said if some people wouldn't allow the House to function, then such an important matter needed to be handled like that. "I appeal to the people of India to maintain calm," he said.

4.52 pm:

Veteran BJP leader LK Advani criticises the manner in which the bill was passed in the Parliament. He called it "perversion of democracy". But why did his party decide to back the Telangana bill?

Meanwhile, supporters of Telangana were seen celebrating in Hyderabad.

4.45 pm:

Samajwadi Party chief Mulayam Singh Yadav slammed the government over the move of barring telecast and also splitting the state into two. "This move will be counter-productive." Yadav said.

Resignations begin

Resignations of Congress MLAs in Seemandhra have started.

Two AP minister Ganta Srinivas Rao and Erasu Pratap Reddy resigned.

Four MLAs Thota Trimurthulu (Ramachandrapuram, East Godavari district), YU Ramanamurthy Raju (Yelamanchili), Avanthi Srinivas (Bheemili, Visakhapatnam District), Chinthalapudi Venkataramaiah (Gajuwaka, Visakha district) resigned from the Congress party

4.43 pm:

"It is a black day in the history of our country," said YSR Congress leader YS Jaganmohan Reddy, adding that democracy was killed in broad daylight. YSR Congress has called a strike in Andhra Pradesh on Wednesday.

Foreign minister Salman Khurshid said it is a historic development.

4.40 pm:

AIMIM leader Asaduddin Owaisi criticises the act of stopping telecast of the Telangana episode from the Lok Sabha.

JD(U) and TMC MPs walked out of the Parliament in protest.

4.10 pm:

TMC objects to Speaker Meira Kumar's move to stop telecast of debate on Telangana Bill.

Suspended MPs try to enter House shouting slogans. Marshals stop them.

4.00 pm:

Sharad Yadav to address media on Telangana bill.

Sonia Gandhi leaves Parliament House, Congress MP Ponnam Prabhakar touched her feet when she left.

3.55 pm:

CPM MPs in the well, Trinamool objects to manner of Bill's passage, Saugata Roy asked for division of votes. The amendment to make #Hyderabad capital of #Telangana has been defeated by voice vote in Lok Sabha.

3:25 pm

Lok Sabha passes Telangana Bill through voice vote. 

3:17 pm

Lok Sabha begins discussion on Telangana Bill but proceedings are not being telecasted as per Speaker's orders. Opposition party leader Sushma Swaraj said in the House that  her party will back the Bill.

Home Minister Sushil Kumar Shinde has said that Seemandhra will get special financial package.

3:09 pm

According to sources, it has been decided that those in well of the House will be considered not to have participated during Telangana Bill discussion.

3:05 pm

Sushma Swaraj, in a meeting with the Speaker said, "We are for Telangana Bill but must be given a chance to speak"

3:00 pm

Telugu Desam Party chief Chandrababu Naidu arrives in Parliament to witness proceedings in Lok Sabha as government prepares to push through Telangana Bill

2:45 pm

According to NDTV, speaker has asked Lok Sabha Secretariat to be ready to pass Telangana Bill in din. A division of votes is likely to take place through slips, not the electronic button.

2:45 pm

Mayawati says Bahujan Samajwadi Party will support Telangana Bill in parliament.

2:00 pm

According to NDTV, Andhra Pradesh minister Srinivasa Rao resigned.

1:05 pm

In a last ditch effort, Telugu Desam Party chief Chandrababu Naidu appealed to Narendra Modi to "use his good office" to keep Andhra Pradesh united till an amicable solution is reached on the issue of creation of separate Telangana.

1:00 pm

Andhra Pradesh law minister Pratap Reddy said that AP chief minister Kiran Kumar Reddy will resign today and will float a new party soon. Kiran might submit his resignation by 3 pm today.

12:45 pm

Lok Sabha adjourned

12:38 pm

Telangana bill moved for consideration and passage in Lok Sabha amid ruckus. Home minister Sushin Kumar Shinde moved the Andhra Pradesh Reorganisation Bill 2014 for consideration in the house even though ministers and MPs from Seemandhra region were in the Well opposing bifurcation of the state. Also, Shinde recommended passing Bill without discussion.

12:00 pm

Rajya Sabha adjourned till 2 pm after MPs opposing the Telangana Bill raised slogans and disrupted the proceedings. 

11:00 pm

After last week's pepper spray incident, riot police have been deployed near the parliament. MPs have had to walk to the Parliament building with the main entrance blocked for vehicles. Their bags are being checked and they have been barred from filming videos or taking photos in the house.

10:00 am

Sources say that the Bill will be taken for discussion in Lok Sabha at 2:30pm

8:00 am

The Bharatiya Janata Party on Tuesday morning cancelled parliamentary party meet on Telangana Bill and informed that a smaller group of top party leaders will discuss the Bill strategy instead.

The BJP has moved 33 amendments in the Bill and have said that the concerns of leaders from Telangana should be discussed before passing the Bill.

Last week, a Seemandhra MP used pepper spray in the House to disrupt the Bill presentation. The Congress MPs from the region have also threatened to quit the party if the new state is formed.

Meanwhile, sources say that Andhra Pradesh Chief Minister Kiran Kumar Reddy may resign in protest today and form a new party.

Telangana Bill passed in Lok Sabha; live telecast suspended

Telangana supporters fix a banner outside Andhra Bhavan in New Delhi on Tuesday. Photo: Pradeep Gaur/Mint

New Delhi: PTI :Liz Mathew :LIVE MINT :18 Feb 14

The Andhra Pradesh Reorganization Bill, 2014, was passed in the Lower House amid unprecedented chaos

The draft law that will bifurcate Andhra Pradesh and create Telangana as India’s 29th state was passed in Parliament on Tuesday with a voice vote.

The Andhra Pradesh Reorganization Bill, 2014, was passed in the Lower House amid unprecedented chaos, prompting the Speaker to suspend live telecast of the proceedings.

Earlier, Speaker Meira Kumar adjourned the Lok Sabha twice as home minister Sushilkumar Shinde moved the controversial draft law amid rowdy protests by those opposed to the creation of Telengana.

The government’s success with the Bill came amid reports that the chief minister of Andhra Pradesh, N. Kiran Kumar Reddy, had decided to quit his post and the Congress party on Tuesday.

PTI quoted unnamed sources in the chief minister’s camp as saying Reddy is expected to meet governor E.S.L. Narasimhan around 3pm and submit his resignation.

In Parliament, unable to control noisy protests, Kumar first adjourned the House till 12:45pm and again till 3pm when Shinde tried to take up the Bill in the reconvened House.

Shinde managed to move the Bill at noon even as MPs belonging to the Seemandhra region of Andhra Pradesh, as well those from the Communist Party of India (Marxist), collected in the centre of the House protesting the proposed legislation.

Members of the Dravida Munnetra Kazhagam (DMK), a leading party in Tamil Nadu, also stood up demanding legislation to introduce quotas for scheduled castes for promotions in government jobs.

The Speaker said she couldn’t take up a no-confidence motion moved by some Seemandhra MPs as the House was not in order.

Sixteen MPs belonging to Andhra Pradesh were suspended last Friday after the house witnessed unprecedented chaos over the proposed bifurcation.

PTI contributed to this story.

The Urjit Patel panel’s recommendations :A new framework for monetary policy

S S Tatapore BL 18 FEB 14

The Urjit Patel panel’s recommendations on institutional reforms should be taken seriously

The merit of the Urjit Patel Committee Report to Review and Strengthen the Monetary Policy Framework (January 2014) is its analytical rigour and clear recommendations on improving the efficacy of monetary policy. The Patel Report would become the locus classicus on monetary policy in India.

Key Recommendations

The key recommendations of the Committee are:

(i) The headline Consumer Price Index (CPI) should be the nominal anchor for monetary policy and the Reserve Bank of India (RBI) should make this the predominant objective.

(ii)The nominal anchor for inflation should be set for a two-year horizon at 4 per cent with a band of plus or minus 2 per cent. Since the present CPI inflation is 10 per cent the Committee recommends a ‘glide path’ of 8 per cent for January 2015 and 6 per cent for January 2016.

(iii) The Central Government needs to reduce the fiscal deficit to 3.0 per cent of GDP by 2016-17. Administered prices, wages and interest rates are impediments to transmission of monetary policy and should be eliminated.

(iv) Monetary policy decisions should be vested in a Monetary Policy Committee (MPC) comprising the Governor, the Deputy Governor and Executive Director in charge of monetary policy and two external full-time members. The decisions of the MPC will be by voting. Members will be accountable for failure to attain the target—failure being defined as inability to attain the target for three successive quarters.

(iv)The real policy rate should be positive. In the first phase the weighted average call rate would be the operative target and the repo rate would be the single policy rate. The funds available at the repo rate would be restricted and increasingly liquidity would be provided at the 14 day term repo; longer-term repo auctions should be introduced.

(v) In the second phase, the 14-day repo rate would be the operative target and recourse to outright two-way open market operations (OMO) would determine liquidity. OMO should not used to manage yields on government securities.

(vi)There should be a remunerated standing deposit facility at the RBI to sterilise excess liquidity.

(vii) With an independent debt management office, the market stabilisation scheme and cash management bills should be phased out.

(viii) All sector specific refinance should be phased out as committed to the Asian Development Bank in 1992.

The implications of the key recommendations are discussed below.

Nominal Anchor

The CPI inflation is quite clearly the appropriate anchor. Those apprehensive of a strong and effective monetary policy will try to stall this recommendation. The RBI should unequivocally emphasise, in its policy statements, that CPI inflation would be its nominal anchor. The gliding to the 4 per cent plus or minus the CPI nominal anchor would be non-disruptive and the RBI should, continue to stress the 8 per cent CPI inflation for January 2015 and 6 per cent for January 2016.

The Patel Committee recommends a remunerated standing deposit facility which, unlike the reverse repo, would not require government securities as collateral. While this would allow sterilisation of capital inflows, without any limit it would be detrimental to the RBI balance sheet as there is no provision in the law to ensure that all losses of the RBI will be met by the government. In the absence of such a legislative clause it would be hazardous to introduce a remunerated standing deposit facility.

The structure and composition of the MPC are pre-eminently suitable. The MPC will have two external full-time members with a fixed three year non-renewable term. There could be some hierarchical problems about these members questioning executive decisions. The RBI should study the experience of Korea and other countries which have full-time members in the MPC.

The Financial Sector Legislative Reforms Commission (FSLRC), in its Report (March 2013), envisaged a MPC with two RBI members and five external members nominated by the government; besides the Finance Secretary or Secretary Economic Affairs would also be a non-voting member of the MPC. Such a structure would make the RBI into a vassal state.

There are media headlines that the Patel Committee advocates full autonomy on interest rates. If the RBI is to be accountable it should have some degree of flexibility to attain its objectives. C. Rangarajan has argued that all the autonomy the RBI needs is headroom to operate monetary policy. The RBI would do well to recall the dictum that autonomy is never given, it is earned and taken.

The anatomy of the RBI

The RBI could explore the scope for converting the present Technical Advisory Committee into a five member MPC with voting by members as envisaged by the Patel Committee, with two External Members who could be members of the RBI Board. This could obviate the need for legislative changes which could take years. The Patel Committee endorses the setting up of an independent Debt Management Office (DMO), but rightly cautions that the RBI’s OMO should be strictly limited to liquidity requirements and not be a vehicle for enabling government borrowing at low interest rates.

The FSLRC recommendation that RBI should be a member of the DMO Council as also the Management Committee is flawed as the Chairman of the DMO is enjoined to obtaining unanimous decisions which would make the RBI monetary policy subservient to the DMO.

There should be an open and constructive debate and the FSLRC Report should not be treated as the holy grail. While the Report attempts to provide a legislative framework, the Patel and Mor Committees set out the policy objectives, and hence all three Reports should be examined in a co-ordinated manner.

(The writer is a Mumbai-based economist)

The FM’s successor is in trouble

BL Arunjaitley, 18  FEB 14

The UPA inherited an upbeat economy from the NDA and ran it to the ground

The Vote-on-Account in Parliament was a valiant effort to showcase a decade of the UPA’s disastrous performance on the economy front in an election year. It was an electoral imperative for the Finance Minister to repackage reality in terms of trumped up numbers. He claims that the trend growth rate during the period that the NDA was in power was below what the UPA has delivered in its two consecutive terms.

One understands the Finance Minister’s compulsion to weave a glossy narrative but there is no getting around the fact that Mr Chidambaram inherited an 8.5 per cent GDP growth rate and exits on a 4.5 per cent GDP growth rate.

Explanations have been offered on the basis of the global financial crisis. But we arrived on the scene in the wake of the Asian financial crisis and exited on a far more positive note than was expected. The growth rate never fell below 5 per cent.

In contrast, for the last three consecutive years of UPA rule, there has been a sharp fall in the growth rate from a near 9 per cent to less than 5 per cent. There is no getting away from the fact that Chidambaram inherited a buoyant economy and is leaving it in a less than healthy state.

Expenditure squeeze

Let us assess his performance with regard to his own target to bring the fiscal deficit down to 4.8 per cent. The claim that there has been a fiscal consolidation with the fiscal deficit pegged at 4.6 per cent of the GDP, below the estimated 4.8 per cent, is disingenuous.

He has achieved this apparently spectacular feat not through revenue buoyancy or by reviving the investment cycle.

Indeed, this reduction in fiscal deficit has been achieved by a severe reduction in expenditure, particularly capital expenditure. This is particularly galling in social sectors where the Congress likes to make tall claims.

The grants for creation of Capital Assets and Capital Expenditure has been cut down by as high as ₹91,000 crore. This alone would have impacted the GDP to the extent of 0.8 per cent.

Similarly, allocations to various ministries in the current year show wide difference between the Budget Estimates of 2013-14 and the Revised Estimates of 2013-14.

The grant to the Ministry of Drinking Water and Sanitation are cut down by 21. 3 per cent.

The grant to the Ministry of Health and Family Welfare is cut down by 20.6 per cent. The grant to the Housing and Urban Poverty Alleviation is cut down by 41.97 per cent, Ministry of Home Affairs by 31.3 per cent, Ministry of HRD by Six per cent, Ministry of Road Transport and Highways by 18.72 per cent and Ministry of Rural Development by 22.92 per cent.

These are departments and ministries which relate to the social sector and infrastructure. Only the Ministry of Finance grants have been increased by 18.3 per cent. Then the grants to the states have been cut down from the Budget Estimates of ₹1,36,254 crore to ₹1,19,039 crore — a reduction of 12.6 per cent.

This slowdown in the manufacturing sector remains a huge concern. This directly reflects on job creation. The excise duties in the current year, which were estimated to be ₹1,97,554 crore has now been revised to ₹1,79,538 crore — a reduction of 9.1 per cent.

Papering over problems

The Finance Minister has taken credit for the stellar performance of the agriculture sector but the real credit goes to states such as Gujarat, Madhya Pradesh and Chhattisgarh which have consistently given double digit growth rates in agriculture.

The subsidy outgo on food, fertiliser and fuel has been projected at ₹2,46,397 crore for 2014-15. Out of this, fuel subsidy is at ₹65,000 crore, fertiliser at ₹36,970 crore and food subsidy is at ₹1,15,000 crore.

The combined expenditures on all food schemes has been reduced from ₹1,24,844 crore in 2013-14 to ₹1,15,000 crore in 2014-15, representing a fall.

This is much below the expectations under the food security scheme which requires a much larger outlay.

The subsidies in fuel have been underestimated year after year. The Finance Minister has once again rolled over fuel subsidies worth ₹35,000 crore to the next fiscal.

This move is a mere statistical illusion to keep the fiscal deficit look optically correct while its inflationary impact on the economy remains real. The Finance Minister has again harped on the OROP, namely the one rank one pension scheme and transferred ₹500 crore to the Defence Pension Account. The UPA Government has been paying lip service to the cause of defence personnel.

In the earlier Budget in 2009-10, a committee was set up and its recommendations were promised to be implemented. But the grievances remained as the approach was half-baked. Again the Finance Minister has promised that this cause has been completely addressed in this Budget. There should be no attempt to play with the aspirations of our Armed Forces.

Even though the Vote-on-Account is only for a period of four months, there are serious concerns on the growth rate, real fiscal deficit, inflation, investment and the slowdown in the manufacturing sector.

The stability of the rupee is a matter of concern particularly because the rupee itself has reached unacceptably low levels.

To compensate for all these drawbacks, the Finance Minister had to lean back on larger slogans such as his ‘Idea of India’.

Obviously, in an ideologically pluralistic society, there can be more than one ‘Idea of India’. No one can usurp the title of a book and claim it only belongs to him.

The question to be asked then is — will the Finance Minister seriously introspect on the legacy he will leave behind for the next Finance Minister? The Finance Minister will be a relieved man today. His successor will be in trouble.

The writer is the leader of the Opposition in the Rajya Sabha

PSU banks get Rs 11,200 crore to shore up Tier-I capital

ENS Economic Bureau | New Delhi | February 18, 2014 11:40 am

SUMMARY

Non-performing assets (NPAs) of public sector banks rose 28.5 per cent to Rs 2.36 lakh crore in September last year, from Rs 1.83 lakh crore in March 2013.

Public sector banks have been allocated Rs 11,200 crore for capital infusion as equity in FY15 in the Interim Budget but finance minister P Chidambaram stressed the lenders should depend more on internal resources such as net profits.

“I am signaling that it is good corporate and business practice to raise your own capital. Unlike other industries, banking requires capital every year and banks should put aside a part of their net profits,” Chidambaram told reporters at the post-Budget press conference on Monday.

The finance ministry had also promised state-owned lenders additional capital infusion for cheaper loans on consumer durables and automobiles. But the Centre’s capital support to state-owned lenders has declined over the last few years. The allocation in the Interim Budget 2014-15 for bank recapitalisation is lower than the Rs 14,000 crore in the current fiscal and the Rs 15,000 crore in 2012-13.

However, the country’s largest lender State Bank of India raised concerns over the allocation and said it may not be sufficient given the systemic credit growth and migration to the capital-intensive Basel-III framework.

“The proposed provision of Rs 11,200 crore for capital infusion in public sector banks may not be sufficient,” State Bank of India chief economic adviser Soumya Kanti Ghosh said in a note.

In view of the Basel III, or global prudential banking norms, all banks have been planning to shore up their Tier 1 capital despite facing rising bad loans on their bank accounts. “The provision for recapitalisation of the public sector banks will provide the risk capital given the current level of stress as well as provide good buffer for growth capital for the industry as a whole,” said Monish Shah, Senior Director, Deloitte (India).

Non-performing assets (NPAs) of public sector banks rose 28.5 per cent to Rs 2.36 lakh crore in September last year, from Rs 1.83 lakh crore in March 2013.

However, finance minister P Chidambaram that as the economy turns around, banks will be able to contain the NPAs

Bank Of India Strike On 24 Fab And 28 & 29 March

The Spirit of Warren Buffett : Let us Do or Die

Quotes :

"Let us Do or Die "

The Times of Warren Buffett :

Personal Life 

Buffett married Susan Buffett (née Thompson) in 1952. 

They had three children, Susie, Howard and Peter. The couple began living separately in 1977, although they remained married until her death in July 2004.

 Their daughter, Susie, lives in Omaha and does charitable work through the Susan A. Buffett Foundation and is a national board member of Girls, Inc.

 In 2006, on his seventy-sixth birthday, Warren married his longtime companion, Astrid Menks, who was then 60 years old. She had lived with him since his wife's departure to San Francisco in 1977. It was Susan Buffett who arranged for the two to meet before she left Omaha to pursue her singing career. 

All three were close and Christmas cards to friends were signed "Warren, Susie and Astrid".Susan Buffett briefly discussed this relationship in an interview on the Charlie Rose Show shortly before her death, in a rare glimpse into Buffett's personal life

Warren Buffett disowned his son Peter's adopted daughter, Nicole, in 2006 after she participated in the Jamie Johnson documentary, The One Percent. Although his first wife had referred to Nicole as one of her "adored grandchildren",

Buffett wrote her a letter stating, "I have not emotionally or legally adopted you as a grandchild, nor have the rest of my family adopted you as a niece or a cousin." 

Books on warren Buffett :

Author :Chellamuthu Kuppusamy  
Saravanan P (Photographer)
 Kindle Edition

Powerful Quotes of Steve Jobs : The Light that burns twice as Bright Burns half as long

Powerful Quotes of Steve Jobs : 

"The Light that burns twice as Bright Burns half as long "

The Management Tip of the Day : Get Out of Your Comfort Zone

February 18, 2014 Moving beyond our comfort zones is how we can best learn and grow.  To develop the courage to take a leap, and the skill and ability to actually pull it off:  Understand what’s in it for you to motivate yourself. Brainstorm how working on this tough behavior — networking, perhaps, or public speaking — can advance your career or help you reach other goals. Then, customize a plan to take control of a situation instead of being overwhelmed by it. If, for example, you’re an introvert who dreads networking events, instead of feeling pressured to meet everyone, focus on a few people and actually try to get to know them, or aim to make initial contacts with the goal of following up in a more comfortable setting. Adapted from “Get Out of Your Comfort Zone: A Guide for the Terrified” by Andy Molinsky.